Project Summary

Agricultural trade and foreign direct investment between China and the United States are critical components of the global economy, with significant economic implications for both countries. China is the world’s largest agricultural producer and consumer, accounting for 18.4% of global agricultural output. At the same time, the United States is the world’s leading agricultural exporter, with agricultural exports accounting for 7% of total U.S. goods exported. For instance, in 2020, the value of U.S. agricultural shipments to China reached $27.2 billion, up from $9.1 billion in 2017, with soybeans accounting for 62% of all U.S. agricultural exports to China in 2020 alone. Soybeans are an essential agricultural commodity grown in North Dakota. However, policy issues, such as intellectual property rights, market access, and food safety, have become increasingly important in shaping the dynamics of agricultural trade and foreign direct investment between China and the United States. For example, weak law enforcement in China has resulted in U.S. technology and intellectual property theft. At the same time, tariff and non-tariff barriers, such as sanitary and phytosanitary measures and technical trade barriers, have restricted U.S. agricultural exports to China. Foreign direct investment is also a significant component of this relationship, with both countries implementing new policies to protect their domestic economies. Ongoing analysis and evaluation of this relationship are crucial and highly timely to ensure that it remains sustainable and beneficial for both countries while addressing the policy issues that arise.